Tags: handling & distributing, shipping, distribution
Truck supply tightens as demand grows
The demand for trucks is increasing, putting pressure on a trucking industry that has seen its supply of rigs dwindle in recent years.
According to a newsletter from Norwalk, Iowa-based Des Moines Truck Brokers, excess capacity has marked the industry for the past 18 months, and many owner/operators have sold their trucks overseas, particularly during the recession.
Internet Truckstop, an online freight-matching service, recently reported that, for the first time since July 2008, its Market Demand Index rose above 7, according to the newsletter. The index measures the level of demand for the trucks available.
An index number below 7 generally means that pricing leverage lies with the shipper; above 7, it lies with the motor carrier, according to the newsletter.